Retrenchment Calculator

<< Click to Display Table of Contents >>

Navigation:  Payroll Module > Payroll - Further Topics >

Retrenchment Calculator

The Retrenchment Calculator is a utility program that can be used outside of Belina Payroll to calculate the PAYE to be deducted from retrenchment amounts being paid to employees.  The Retrenchment Calculator then produces a report which can be submitted to ZIMRA for verification and approval.  Once this is done and the tax directive has been received then the retrenchment can then be processed into the payroll as a transaction. Please note that, on Year To Date Amounts use amounts of the current tax Year in-cases where there is a tax split in-between the year.  

 

A careful check needs to be done to ensure that the retrenchment has been correctly processed into the payroll.  To do this:

•Process the full payroll and run the Calculation Routine, note the total PAYE amount (X)

•Process the retrenchment amounts

•Run the Calculation Routine and note the new PAYE amount (Y)

•Calculate the difference in the PAYE amounts (Y) - (X).  This amount should agree to the PAYE amount reported by the Retrenchment Calculator.

 

Enter topic text here.After having installed the Belina PayrollHR software to get the system running the following steps need to be followed:

tog_minus        Step 1 - Download the Retrenchment Calculator Calculator

Download the Retrenchment Calculator from the Belina website.

 

 

tog_minus        Step 2 - Process the Retrenchment Amounts Calculator

The Retrenchment calculator is a Microsoft Excel document with macros embedded. By default Excel disables macros so click on Enable Content to have permissions to use the Calculator

 

Retrechment Calculator - Enable

 

Populate the Company and Employee details on the first paragraph of the calculator. The details required are labeled on the calculator.  

 

Retrenchment Calculator- Personal and Company Details

 

 

Retrenchment Calculator Package

 

ZiG or USD

Select the currency that you want to process

Package

This refers to the actual package or amounts that the employee is receiving for retrenchment

Motor Vehicle (amount/value)

If the organization decides to sell a motor vehicle to the employee as part of the retrenchment package. Enter the value of the motor vehicle on this option

Other Income, Benefit(s), Gratuity

If the Company is giving out any other Benefits , the value of the benefits are inserted on this option. Gratuity amounts are also inserted on this option.

Year To Date Income (Salaries,Wages)upon Termination

These are the Year To Date amounts received by an employee in that current tax year.

Current earnings including C.I.L.L

These are the normal monthly earnings that the employee is receiving in that period if the employer decided to give the employee. Cash in Laue of Leave is included on this option.

Less Year To Date Allowable Deducttions),NSSA,NEC,Trade Union

These are the total amounts for your Year To Date allowable deductions amounts

Total Tax Credits

Enter your Year To Date Tax Credits

Calculate

Press the Calculate button to see what tax amounts are due

 

tog_minus        Step 3 - Extract and submit report to ZIMRA

After doing the calculations, please contact your ZIMRA Liason officer and get a confirmation of the figures.